Originally published on 2/10 2023
ESGFIRE returns since 2018: + 1000 %
ESGFIRE returns year to date 2023: – 5 %
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Portfolio top picks for October:
Portfolio comment for September 2023
On the macro front inflation is coming down on both sides of the atlantic however major indexes have had a rough time these last two months with the Nasdaq dropping close to 6 % in the last month. Small caps and microcaps have had an even rougher time. For example the S&P TSX venture composite index is down 8 % in the last 12 months.
ESGFIRE analysis of the portfolios poor returns for 2023 is, by our assessment due to the fact that we were not quick enough to drop unprofitable companies in anticipation of the rising yield curve and current high interest environment. We underestimated the trickle down effect on valuations and multiples becoming lower overall due to the rising interest rate environment which has formed in the last 1,5 years.
The portfolio remains 100 % invested at this point. We have seen many former portfolio companies in pre revenue stage decrease in value by more than our own portfolio. The reasons vary however in this new market condition valuations and a well funded business have become increasingly more important than ever before.
ESGFIRE is a Swedish investment company and research firm that focuses on companies with either an environmentally friendly service or product. ESGFIRE has a performance record of over 1000 % returns since 2018. By only investing in environmentally friendly companies, ESGFIRE have outperformed the major indexes for several years. We have a track record of over 1100 % returns since 2018 using our own proven method of identifying high potential ESG companies.
Current ESGFIRE portfolio with Monthly performance for September 2023.
September performance: -5 %
Absolicon has seen major headwind for its stock as their latest private placement was nowhere near fully subscribed due what to appears to have been hubris in setting the terms unattractive. The fact that the founders were let of the hook in subscribing despite the fact that they had guaranteed some amounts did not impose faith. The company has a big pipeline but payments have been delayed from clients and we are a bit worried about the cash reserves of the company. There is a risk for a new private placement in the next few months unless payments and new orders start ticking in.
September performance : -8 %
We encourage all our readers to read our target price update on Replenish (Earthrenew).
The market does not seem to appreciate the fact that the company has its path clear to 40 million in revenues by 2024 not including potential licensing deals.
The company received 7 million CAD in grants which are not required to be repaid. The cash will be used as equity for the companys Deboult granulation facility and remaining funds are expected to be secured through loan term sheets.
Other potential triggers near term are:
1. Licensing revenues with high margins and ongoing discussions with partners.
2. Field studies showing the superiority of the companys products.
3. Build start of Deboult granulation facility
We are confident that if all these things fall into place the company is bound to see a huge upwards valuation near term.
Vicinity Motor Corp
September performance: -10 %
Everything is in place for Vicinity Motors to have a smashing end of 2023. Credit facility is in place, the 150 million dollar backlog looks strong and the new Ferndale facility is also in the making.
September performance: +10 %
Norditek had a great start to 2023 but fell heavily on lower profitability than expected in their last earnings report. The lower earnings were mainly due to investments for future growth.
September performance: + 5 %
September performance: – 13 %
Landi Renzo had a new analysis released by BG which can be viewed HERE. The target price of GBC AG is 0,70 EUR. We also recommend you read THIS analysis on the company for more information.
September Performance:- 10 %
Gomero group has so far been a dissapointment for ESGFIRE which significantly lower growth than expected. We were hoping to see 15-20 % growth in the last quarters but so far we’ve only seen around 10-12 %. We will give Gomero until Q4 2023 to prove us wrong otherwise the company may leave the portfolio going forward. Our investment case is based on a growth assumption is a year over year organic growth between 20-30 %.
September Performance: – 7 %
We recommend our followers read our latest update on Ekobot HERE . Considering that competitors are valued in the several hundred million dollar range we think it’s fair to say the risk reward is good in Ekobot.
We have sold our position in Biofrigas and we have chosen to invest our proceeds in Earthrenew instead due to the massive risk reward scenario.
We have a number of positions in unlisted companies which we anticipate will go public through initial public offerings within the next 6-18 months.
Evanesce packaging solutions
As a sustainable technology innovator,Evansesce is revolutionizing sustainable packaging with 100% compostable and affordable plant-based solutions.
ESGFIRE and those of our readers who invested in the company entered at a valuation of 30 MCAD implying a likely 12-24 X upside to our initial investment. The company is likely going public in the second quarter of 2024 on one of the Canadian stock exchanges or NASDAQ.
The vision of Captico2 is to be the world leading in offering high impact Carbon Capture Utilisation and Storage technologies (CCUS). Captico2 can capture mineralize and transform carbon dioxide into a valuable and sellable commodity in less than 60 seconds. The company aims to pre-sell 10 full scale units in 2022 creating potential revenues of 160 million EUR. The company currently has a 500 million USD sales pipeline.
Captico2 is currently undergoing restructuring and IPO plans have been postponed .
OLA MEDIA is a network of interactive touch screens located exclusively in the backseat of Ubers. By leveraging innovative technologies and captivating spaces, they help brands create engaging experiences with a high value audience.
Ola Media is currently closing a capital round which implies a 300 % upside for our initial investment. The company is likely going public during the second quarter of 2022 at either Canadian exchanges or NASDAQ.
Alchemy is developing innovative nanocoating solutions to the challenges faced by many industries. Their coatings are designed to repel water, dirt, and ice while maintaining the high transparency, mechanical durability, and weatherability specifications for advanced sensor systems used in harsh environments. The company has a deal with the Canadian army and this may be further increased during this fall which could imply a 3-5 X valuation of our initial investment.
Most likely going public by Q3 of 2022 .
The stock price development above was calculated by taking the opening price at the first day of the month and the closing price at the last day of the month.
This post is based upon reliable sources, namely regulated press releases from the company, as referred to above. Nevertheless, this post may contain interpretations, estimates, or opinions of the authors, or other non-factual information. If that is the case, this is continuously stated above. Furthermore, any projections, forecasts, or similar are explicitly stated as such. These projections, forecasts, or similar have been conducted based on EV/SALES multiple calculations.
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may impact the content on the website. Because of the above, ESG Fire urges the visitors to always analyze all the posts critically in an objective manner, e.g., concerning the reliability of the relevant source and of what constitutes the authors’ personal interpretations. The visitor is hereby reminded that the post does, as set forth in the Post, contain interpretations, estimates, or opinions of the authors. This post was written by Filip Erhardt , at ESGFIRE , published at October 2, 2023.
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